Asia Pacific eCommerce To Reach $1.4 Trillion in 2017

In 2013, Asia Pacific ecommerce reached $535 billion USD. In 2013, it has been forecast to reach $1.3 trillion USD. This represents compound annual growth rate of 27% between 2013 and 2017. This is significantly higher than in Europe, with a CAGR of 14%, and North America with a CAGR of 13%.
These findings come from the Consumer Payments Insight Survey, conducted by Global Data. It shows the extent of Asian consumer’s demand for smartphones, mobile apps & digital wallets when buying online.

Where does this spending come from?

Most Asia Pacific ecommerce spending comes from China. Of the 14 Asia Pacific markets surveyed, China accounts for 75% of the spend. China became the largest ecommerce market globally in 2014, surpassing the USA.

Japan came in 2nd, accounting for 10% of the spend by overall transaction value.

India came in 3rd, accounting for 3% of the spend by overall transaction value.

Which were the preferred payment methods?

47% of the overall ecommerce transaction value was spent using digital and mobile wallets in 2017 in the Asia Pacific region.

28% was spent using payment cards

13% was spent using bank transfer

11% was spent using cash or cheques

Alipay was the most popular ewallet in China, which holds a 40% market share of online payments in the country. Paytm was the most popular ewallet in India, with a 10% market share of online payments in the country.

56% of ecommerce transactions were carried out on smartphones of tablets in China

23% of ecommerce transactions were carried out on smartphones of tablets in the US

26% of of ecommerce transactions were carried out on smartphones of tablets in the UK

Across the Asia Pacific region, ewallets are perceived to be more secure than card payments, and their popularity is driven by security and comfort. Increasing the comfort factor, most transactions are carried out within an app. 70% of those who responded to the survey preferred to buy using a mobile app when buying online.

22% of transactions carried out online in Singapore were carried out using an ewallet in 2017, up from just 10% in 2013

29% of transactions carried out online in India were carried out using an ewallet in 2017, up from just 7% in 2013

Domestic and international PSPs, banks and mobile operators have been investing significantly in ewallets in the region. Paypal, Android Pay and Apple Pay are all available across the Asian market, by they have struggled to compete with more established local payment solutions like Alipay & WeChat Pay.